VIP Industries Ltd has announced that its promoters, Dilip Piramal and family, have entered into a definitive agreement to sell up to a 32% stake in the company to the Multiples Consortium. This strategic transaction will trigger an open offer, in compliance with the Securities and Exchange Board of India (SEBI) Takeover Regulations.

 

Following the completion of the transaction, control of VIP Industries will shift to Multiples Private Equity. While stepping back from day-to-day management, Dilip Piramal and family will continue as shareholders in the company. Dilip Piramal will assume the honorary position of Chairman Emeritus.

 

Welcoming the partnership, Dilip Piramal, current Chairman of VIP Industries, stated, “We are pleased to welcome the Multiples consortium as strategic partners in the company. This marks an important step toward reviving the company’s strong legacy and helping it regain its foothold in the Indian luggage market, where it has struggled in recent years.”

 

Renuka Ramnath, Founder, Managing Director and CEO of Multiples Alternate Asset Management, added, “Multiples is excited to lead the ownership transition of the very strong legacy business of VIP and further build on its rich heritage and unlock its next phase of growth.”

 

The transaction, including the proposed open offer, is subject to regulatory approvals, including clearance from the Competition Commission of India, and will proceed in accordance with SEBI’s Takeover Code.

 

Arpwood Capital acted as the financial advisor to the selling promoters. JM Financial has been appointed as the manager for the open offer. Legal advisory for the sellers was provided by AZB & Partners, while Khaitan & Co. and Anagram Partners advised Multiples and its consortium.